Day trading guide: 2 stock recommendations for Monday

Benchmark indices ended a truncated trading week with gains of more than 2 per cent, kicking off April on a positive note. Further, bulls finally managed to push the Nifty 50 index beyond its key short-term moving averages, the 20-DMA and the 50-DMA placed at 14,840 and 14,785 respectively. The index also made a higher high crossing its previous week’s high of 14,878, indicating bullishness; now sustained trade above 14,900 in the coming sessions will extend the gains to levels of 15,100-15,250. On the downside, a critical support zone is 14,740-14,650. Technical indicator RSI has turned upwards after taking support at the lower end of the bull territory, suggesting that the uptrend is still intact, and a move above 14,900 could take the index all the way up to 15,250

Equity recommendation

Buy @ CMP: Rs 1,596

Target: Rs 1,700

Stop loss: Rs 1,540

The stock has resumed its uptrend after breaking out of a bullish flag pattern on higher volumes. Further, it has closed beyond the upper end of the Bollinger bands, confirming the bullishness. Technical indicator RSI is also confirming that the stock it trading in a bullish territory.

Buy @CMP: Rs 945

Target: Rs 1,000

Stop loss: Rs 910

The stock has resumed its uptrend after breaking out of a falling wedge pattern on healthy volumes. Further, it is trading above all its key short-term moving averages (i.e. 20-DMA and 50-DMA), confirming the bullishness. The positive directional indicator (DI) has crossed over its negative counterpart on the weekly chart, suggesting higher levels.

(Aditya Agarwala is Senior Technical Analyst at YES Securities)

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